Derivative Financial Instruments (Tables)

9 Months Ended

Oct. 03, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Net Fair Value of Commodity Price Risk

As of October 3, 2020, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Assets:
Other current	$	7,372		$	—	$	—	$	7,372
Other long-term		454			—		—		454
Total		7,826			—		—		7,826
Liabilities:
Other current		(159	)		—		—		(159	)
Other long-term		—			—		—		—
Total		(159	)		—		—		(159	)
Net Fair Value	$	7,667		$	—	$	—	$	7,667

As of December 28, 2019, the company’s hedge portfolio contained commodity derivatives, which are recorded in the following accounts with fair values measured as indicated (amounts in thousands):

	Level 1			Level 2		Level 3		Total
Assets:
Other current	$	3,191		$	—	$	—	$	3,191
Other long-term		589			—		—		589
Total		3,780			—		—		3,780
Liabilities:
Other current		(814	)		—		—		(814	)
Other long-term		(792	)		—		—		(792	)
Total		(1,606	)		—		—		(1,606	)
Net Fair Value	$	2,174		$	—	$	—	$	2,174

Derivative Instruments Located on Condensed Consolidated Balance Sheet

The company has the following derivative instruments located on the Condensed Consolidated Balance Sheets, which are utilized for the risk management purposes detailed above (amounts in thousands):

	Derivative Assets						Derivative Liabilities
	October 3, 2020			December 28, 2019			October 3, 2020			December 28, 2019
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity contracts	Other current assets	$	7,372	Other current assets	$	3,191	Other accrued liabilities	$	159	Other accrued liabilities	$	814
Commodity contracts	Other assets		454	Other assets		589	Other long-term liabilities		—	Other long-term liabilities		792
Total		$	7,826		$	3,780		$	159		$	1,606

Effect of Derivative Instruments for Deferred Gains And (Losses) on Closed Contracts and Effective Portion in Fair Value on AOCI, Utilized for Risk Management Purposes (Detail)

The company had the following derivative instruments for deferred gains and (losses) on closed contracts and the effective portion for changes in fair value recorded in AOCI (no amounts were excluded from the effectiveness test), all of which are utilized for the risk management purposes detailed above (amounts in thousands and net of tax):

	Amount of Gain or (Loss)						Amount of (Loss)
	Recognized in AOCI on Derivatives						Reclassified from AOCI
	(Effective Portion)					Location of Gain or (Loss)	into Income (Effective Portion)
Derivatives in Cash Flow	For the Twelve Weeks Ended					Reclassified from AOCI	For the Twelve Weeks Ended
Hedge Relationships(1)	October 3, 2020		October 5, 2019			into Income (Effective Portion)(2)	October 3, 2020			October 5, 2019
Interest rate contracts	$	—	$	—		Interest expense	$	(25	)	$	(25	)
Commodity contracts		9,409		(7,124	)	Production costs(3)		(652	)		(234	)
Total	$	9,409	$	(7,124	)		$	(677	)	$	(259	)

	Amount of Gain or (Loss)						Amount of Gain or (Loss)
	Recognized in AOCI on Derivatives						Reclassified from AOCI
	(Effective Portion)					Location of Gain or (Loss)	into Income (Effective Portion)
Derivatives in Cash Flow	For the Forty Weeks Ended					Reclassified from AOCI	For the Forty Weeks Ended
Hedge Relationships(1)	October 3, 2020		October 5, 2019			into Income (Effective Portion)(2)	October 3, 2020			October 5, 2019
Interest rate contracts	$	—	$	—		Interest expense	$	(83	)	$	(83	)
Commodity contracts		2,202		(4,577	)	Production costs(3)		(1,669	)		2,947
Total	$	2,202	$	(4,577	)		$	(1,752	)	$	2,864

1. Amounts in parentheses indicate debits to determine net income.

2. Amounts in parentheses, if any, indicate credits to determine net income.

3. Included in materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately). 

Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions

At October 3, 2020, the balance in AOCI related to commodity price risk and interest rate risk derivative transactions that closed or will expire over the following years are as follows (amounts in thousands and net of tax) (amounts in parenthesis indicate a debit balance):

	Commodity Price Risk Derivatives			Interest Rate Risk Derivatives		Totals
Closed contracts	$	(345	)	$	205	$	(140	)
Expiring in 2020		—			—		—
Expiring in 2021		5,775			—		5,775
Expiring in 2022		(23	)		—		(23	)
Total	$	5,407		$	205	$	5,612

Financial Contracts Hedging Commodity Risk

As of October 3, 2020, the company had the following outstanding financial contracts that were entered to hedge commodity risk (amounts in thousands):

	Notional Amount
Wheat contracts	$	95,771
Soybean oil contracts		14,889
Natural gas contracts		7,245
Corn contracts		7,148
Total	$	125,053